Announced on Friday afternoon, Cockatoo said it acquired all shares in Peabody Baralaba Investments and the refinance of $52.5 million debt payable by the Peabody subsidiary.
Some $40 million was paid or loaned by Cockatoo with $25 million provided by SK Australia.
To part-finance the Baralaba deal, Cockatoo executed an agreement whereby SK Australia will subscribe for 35,410,765 ordinary shares for the $25 million received as a loan by Cockatoo.
Under the deal, Cockatoo and SK Australia will also form a joint venture to manage the sale and marketing of all existing and future coal production from Cockatoo.
Cockatoo has previously said the joint venture would further enhance the company’s access to the Korean market.
With Cockatoo effectively taking operational control of the mine, sited on the southeastern limb of the Bowen Basin, the company can embark upon plans to expand output to 420,000 tonnes per annum from the current production rate of 300,000tpa.
